ACA audit checklist: Everything you need to survive a DOL visit

May 4, 2015
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WHAT’S INSIDE
ACA audit checklist: Everything
you need to survive a DOL visit
■ An insider’s guide on what to expect
I
f upper management needs more
convincing that preparing for a
health reform audit should be a top
priority, tell them this:
The DOL recently established a hit
squad whose sole purpose is auditing
firms on ACA compliance.
One of DOL’s new investigators,
Tiffany Woo, spoke at the Mid-Sized
Retirement and Healthcare Plan
Management Conference in San Diego
about exactly what employers can
expect from an ACA audit and what
they can do to come out unscathed.
Woo began her presentation by
asking how many employers have
already gone through an audit and,
based on the number of hands that
shot up, the DOL has been very busy.
Why they’re investigating
Specifically, the feds are looking
at health plans (fully-insured and
self-insured) for their compliance
with Part 7 of ERISA and fiduciary
responsibilities as they pertain
to group health plans.
One example: Claims regulation.
How does a plan respond to denials?
The good news is most of the issues
that cause the DOL to investigate in
the first place can be avoided. Woo
revealed that employee complaints,
(Please turn to Audit … Page 2)
OBAM ACARE CH ANGES
2 Sharpen Your Judgment
Employee doesn’t report hours
but sues for unpaid overtime
3 Health Care
Passing health costs onto
workers: Without killing moral
4 Compensation
IRS modifies correction
program for retirement plans
5 Real Problems/Real Solutions
Single benefits form made life
easier for everyone involved
7 What Worked, What Didn’t
Changing brokers cut costs
ACA: Feds extend new Summary Statement deadline
G
ood news: The major changes
the feds recently proposed to the
Summary of Benefits and Coverage
(SBC) statements won’t be finalized
until at least 2016.
And that means employers have a
good amount of breathing room until
they must comply with the wholesale
changes to the SBCs.
Finalized in 2016
If you remember, the feds issued a
new proposed SBC rule right at the
end of 2014.
This included reg changes and
wholesale amendments to the
proposed templates of the SBCs, a
revised instruction guide and a revised
uniform glossary.
Originally, when the feds rolled out
the proposed SBC reg, they said the
changes would take effect for
healthcare coverage beginning on or
after Sept. 1, 2015.
Now, according to a new FAQ on
DOL’s website, the new SBC templates
and documents are expected to be
finalized by the Obamacare agencies
in January of 2016.
The new forms will then apply to
insurance coverage that renews or
kicks in on or after Jan. 1, 2017.
So this is quite an extension.
To view the DOL’s latest FAQ,
visit: bit.ly/Summary487
D
O L
I
N V E S T I G AT I O N S
Audit …
•
(continued from Page 1)
Form 5500 errors and private
litigation were the major audit
triggers. Of course, there are random
audits, so employers should always be
ready to prove their ACA compliance.
•
The audit process
In terms of the actual audit, here’s
exactly how the process unfolds:
• Case opening letter: These have
a very cold, formal tone, that
alarms many firms. Woo said
employers can and should call the
office with any concerns.
• A request for documents: This tends
to include plan documents, SPDs,
open enrollment paperwork and
premium collection info.
The major documentation the DOL
expects firms to provide includes
SPDs, plan docs, coverage
certifications, Summary of Benefits
EDITOR: JARED BILSKI
[email protected]
ASSOCIATE EDITOR: CATHY PULEO
MANAGING EDITOR: TIM GOULD
PRODUCTION EDITOR: AMY JACOBY
•
•
and Coverage (SBC) statements,
contracts and schedules.
Interviews: On top of
documentation, the DOL interviews
employees who make decisions
about the plan and its operation.
A Voluntary Compliance Letter: It
details violations uncovered during
the audit as well as how firms
should respond. Not responding to
this can lead to DOL litigation.
Correction period: Here, firms
correct violations the agency listed.
Closing Letter: This signals the
close of the DOL investigation.
Where you can get help
Luckily, there are a wealth of
available resources employers can use
before, during and after an audit to
help with compliance issues.
Woo stressed the benefits of the
DOL’s Health Law Self-Compliance
Tool – bit.ly/tool487 – a detailed
checklist employers can use to
determine any potential compliance
issues before the feds come knocking.
Another little-known resource is the
Employee Benefits Security
Administration (EBSA) advisor team.
Firms can dial 866-444-EBSA (3272),
and they’ll be connected with an agency
lawyer who will answer any questions.
Common errors
EDITORIAL DIRECTOR: CURT BROWN
What’s New in Benefits & Compensation
(ISSN 1076-0466), issue date May 4, 2015,
Vol. 22 No. 487, is published semi-monthly, except
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Finally, Woo touched on these
common ACA compliance errors she’s
seen from employers:
Grandfathered status: Many firms
believe they’re still grandfathered
when in fact they aren’t. Some
incorrectly assume that because one
health plan was grandfathered, the
others would be.
Emergent (ER) services: Employers
wind up in trouble when out-ofnetwork ER services cost more than
in-network ones. Another ER issue the
DOL sees: requiring pre-authorization
for ER usage.
Based on “Update on Health
Benefits Law” by Tiffany Woo as
presented at the Mid-Sized Retirement
& Healthcare Plan Management
Conference in San Diego.
S
HARPEN YOUR
BENEFITS
J U D G M E N T
This feature provides a framework for
decision making that helps keep you and
your company out of trouble. It describes
a recent legal conflict and lets you judge
the outcome.
■ Employee doesn’t report
hours but sues for unpaid OT
Benefits manager Betty Murphy
was going over the itinerary of her
long-awaited trip to Italy when
company attorney Jim Gannon
walked in.
“Hello, Jim!” Betty said. “Even
you can’t bring me down today.”
“Don’t be so sure,” Jim said. “Lou
DeNaples is suing for unpaid OT.”
“He’s what?” Betty asked.
“Employees here are responsible for
reporting all of the hours they
worked on their timesheets.”
“I know it won’t be as fun as
going over your trip, but can you
take me through it?” Jim asked.
In our company’s policy
“Here’s the thing,” Betty said.
“Not getting paid is on Lou, not us.”
“Why is that?” Jim asked.
“Because we have a very clear
policy on reporting hours worked. It
says employees must report all hours
worked,” Betty said. “We paid Lou
for each and every hour that he
reported to us.”
“I see,” Jim said. “But Lou is
claiming that his manager told him
to do some tasks off the clock for an
hour after his shift was over. He also
claims his boss told him it was
necessary because ‘the company
doesn’t pay overtime.’”
“We pay for every hour our staff
reports, overtime or not,” Betty said.
“But Lou violated our reporting
policy, so he’s not entitled to OT.”
Lou sued for unpaid overtime
under the FLSA, and the company
fought to get the suit dismissed.
Did the company win?
■ Make your decision, then please turn
to page 6 for the court’s ruling.
xwww.WhatsNewinBenefitsandCompensation.comx
2
May 4, 2015
H
E A LT H
C
A R E
Passing health costs onto workers:
How to do it without killing morale
W
hen it comes to keeping rising
health costs at bay, employers
essentially have three choices: change
carriers, change coverage or change
(i.e., increase) workers’ contributions.
Because the little guys are
negotiating with small risk pools,
they’re hit especially hard by increases.
That means many small firms are
left with little choice but to pass along
more of the cost burden to employees.
Here are morale-saving ways to do it:
Good for high-earners, but ...
Offering and partially funding
tax-advantaged accounts like HSAs,
HRAs and FSAs can go a long way
toward helping workers with out-ofpocket costs and high deductibles.
But there are plenty of obstacles.
Example: High-deductible plans
coupled with HSAs and HRAs tend to
go over well with high-earners.
Low-earners, however, tend to balk
at fully funding tax-advantaged
accounts, which can leave them in the
lurch when a major medical event
takes place. To prevent this, show
folks exactly how much they can save
in taxes. Example: If you fully fund an
FSA ($2,550 for ’15) and spend that
amount, you’re saving $800 or $900.
3 unique takes on cost-sharing
Creativity is another way to make
cost-sharing more bearable for staff.
According to Roger Howell of
Howell Benefit Services, there are
plenty of non-traditional approaches
to cost-sharing that can benefit both
employers and employees, such as:
• The self-funding approach: Some
employers will make workers
self-fund a portion of the deductible
and they cover all costs (co-pays or
co-insurance) beyond it.
• The split approach: Howell sees
some employers offering a 50/50 or
80/20 split of deductible costs.
• A three-tier approach: Here an
employee may be responsible for
the first $500, the company for the
next $1,500 and, beyond that, staff
will cover any additional expenses.
Info: bit.ly/share487 (registration
required)
Breaking down plan costs
Total average health plan cost (by plan type)
$9,828
$3,339
Average total cost of PPO plan in 2014
Average employee cost of PPO plan in 2014
Average employer cost
of PPO plan in 2014
$6,489
$9,072
$3,022
$6,049
$8,919
$2,883
$6,036
Average total cost of HMO plan in 2014
Average employee cost of HMO plan in 2014
Average employer cost
of HMO plan in 2014
Average total cost of CDHP plan in 2014
Average employee cost of CDHP plan in 2014
Average employer cost
of CDHP plan in 2014
Source: United Benefit Advisors (UBA) 2104 Health Plan Survey
In 2014, CDHPs average per-employee annual premiums were 6.4% lower than
the average. And new research suggests these savings can be sustained long-term.
$
THE COST O F
NONCOMPLIANCE
This regular feature highlights recent
case settlements, court awards and fines
against companies. It serves as a reminder
to keep benefits policies in order.
■ DOL orders firm to restore
$485K to retirement plan
When employers fail to hand
over contributions to company
retirement plans, they usually have
to answer to the DOL for their
actions.
What happened: According to a
DOL investigation, the owner of a
Connecticut architectural firm was
consistently delinquent in depositing
employee deferrals and loan
repayments to its retirement and
savings plan. Eventually, the
company stopped paying anything
at all, while continuing to withhold
contributions from employees’ pay.
Result: The company, FletcherThompson Inc. and company
president, Michael S. Marcinek, were
ordered to restore $485,560 to the
savings plan in installments of
$40,463 per month for 12 months.
Marcinek was also prohibited from
ever serving again as a fiduciary to
any ERISA-covered benefit plan.
Info: bit.ly/retirement487
■ NJ gas stations settle pay
lawsuit for $5.5 million
Fuel prices being what they
are, you’d think these companies
wouldn’t have any problems paying
their rank-and-file workers
minimum wage.
But the DOL found widespread
violations in the pay practices at
leading brand gas stations in New
Jersey.
What happened: A multi-year
investigation uncovered thousands
of workers at Shell, Exxon and BP
service stations were denied
minimum wage, the DOL said.
Result: More than 1,100
attendants received $5.5 million in
back wages recovered during the
enforcement initiative.
Info: bit.ly/gasstations
xwww.WhatsNewinBenefitsandCompensation.comx
May 4, 2015
3
C
O M P E N S AT I O N
IRS modifies correction program for
retirement plans; urges flexibility
N
o companies are immune from
retirement plan errors.
When errors do occur, the IRS
has a number of options employers
can take.
The agency is simplifying some
of those options by offering new
guidance when it comes to recouping
overpayments from retirement plan
participants.
The changes to the Employee Plans
Compliance Resolution System
(EPCRS) will also lower compliance
fees for participant plan loan errors.
Practice flexibility
The IRS has called 401(k) and other
retirement plan sponsors to be
“flexible” in the correction process.
They urge employers to stop
demanding repayment from
participants, which, the agency said,
often places them in difficult financial
straits.
In the end, the plan sponsors may
end up making good on the shortfall.
The IRS established the EPCRS so
that plan sponsors could correct
administrative errors without agency
approval and without jeopardizing a
plan’s tax-qualified status.
The agency said some plans have
demanded repayment of such large
sums of money to correct errors that
the burden was too heavy for many
participants to bear, especially the
elderly.
Prior to the new guidance, the
guidelines provided that any
correction of plan overpayments
must include “reasonable efforts” to
have the overpayment returned to the
plan.
Agency seeks comments
The new document gives some
examples of alternative overpayment
corrections and seeks comments on
the issue.
The agency also announced changes
in some forms, user fees for certain
corrections, self-correction of excess
annual additions and on-cycle
corrections.
Info: bit.ly/irscorrection487
Financial worries impacting the workplace
What workers said about financial stress
60% Employees who are emotionally stressed
and distracted by financial situations
C
O M M U N I C AT I O N
B O O S T E R
■ 5 traits that make great
employees exceptional
How can managers spot an
exceptional employee?
There are a lot of reliable,
dependable, team players and
go-the-extra-mile workers – all the
standard qualities that describe a
good employee.
But what traits take these
workers to the next level?
Here are some qualities
managers should look for:
1. Not satisfied with status quo
While everyone else thinks a
project is moving along smoothly,
outstanding employees are rarely
satisfied. They’re always tinkering
and thinking of ways to make
things better.
2. A little “quirky”
Sometimes exceptional
employees are a little bit “off” – in
a good way. They can actually make
work fun and shake things up by
stretching boundaries and coming
up with great ideas.
3. Have a desire to succeed
These employees may have been
told they would never amount to
anything or didn’t have the skills to
succeed.
Rather than buying into the
negative stereotype, they want to
prove their detractors wrong.
4. Ask questions for others
50% Workers who live paycheck to paycheck
Some employees are reluctant to
speak up in meetings or privately.
37% Said financial stress has
Exceptional staffers are sensitive
to the concerns of co-workers and
will act as a spokesperson when
others fear speaking up.
impacted their work productivity
25%
Employees who have missed work
because of stress from a personal
financial situation
Source: State Street Global Advisors (SSga) retirement survey
Adding a financial wellness program? Keep this in mind: High cost and lack
of convenience are the top reasons workers don’t engage in these programs.
5. Recognize others
Exceptional employees don’t hog
the glory. They’re generous with
praise, realizing that success is a
team effort.
Info: bit.ly/exceptional487
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4
May 4, 2015
WHAT
O
1
WORKED
Single benefits form made
life easier for everyone
Found a balance for
health-reform compliance
We were in a tricky situation
regarding health reform compliance.
I’d been keeping an eye on the
Affordable Care Act reporting
requirements and knew the IRS
released a draft form. But nothing
had been finalized.
If we waited too long to prepare,
we might have to scramble.
On the other hand, if we invested
time and money in getting prepared
and then the requirements changed,
3
OTHER COMPANIES
ur readers come from a broad range of companies, both large and small.
In this regular section, three of them share success stories you can adapt to fit your needs.
We were drowning in enrollment
paperwork, and it was a problem for
both our benefits team and our staff.
We had a separate enrollment
form for every benefit we offered –
long-term disability, dental, vision,
health, etc. That meant our employees
spent a lot of time filling out the same
info over and over again.
Not to mention the fact we had to
file and keep track of everything.
There had to be a better way. That’s
when I decided to start reaching out to
2
FOR
‘Biggest Loser’ builds
health & camaraderie
We were always looking for ways
to encourage our staff to become
healthier, but their response to
participating in wellness initiatives
was never that great.
Until we introduced doing our own
version of the ‘Biggest Loser.”
The competition was a lot of
inexpensive fun and helped employees
get fit.
We were able to recruit a sizeable
group of “contestants” who decided
our carriers to see where we could
streamline the enrollment process.
Little by little
I asked each carrier what legal
language was absolutely essential and
what could be removed.
By the time I got done talking to
each carrier, we were able to scale
back the length quite a bit – and still
keep all of the relevant info. Example:
We were able to cut our health-plan
enrollment form in half.
From there, I created a
single ‘model’ benefits
enrollment form through
REAL
Adobe Reader. Without all the
repetition, employees could fill in a
hard-copy version of the form, or they
can do it online.
As an added bonus, the model form
shows employees exactly what each
benefit will cost. When workers finish
enrolling, we scan the form and give
them a copy for their records.
It’s year two with the single-form
system, and it has vastly improved
efficiency for everyone involved.
(Deb Wolfe, benefits specialist,
Metropolitan School
District of Washington
Township, Indianapolis)
PROBLEMS
REAL
SOLUTIONS
that would be a waste.
I thought taking some
initial steps forward made
sense, and that meant
meeting with people inside and outside
our company.
Monitoring the situation
We have separate Payroll and HR
systems, so we looked at which system
contained more of the data the law
required us to track, and that was
HR’s system.
Plus, we determined we wouldn’t be
able to print the IRS forms straight
together on the competition rules:
• 12-week duration
• bi-weekly weigh-ins, and
• winner determined by percentage of
body weight lost.
Employees calculated how much
they would pay to join. We wanted the
amount to be enough to create a nice
pot of prize money, but not so much it
excluded people with tight budgets.
Comic relief
You could say the competition
fostered some “friendly” competition
from the system.
Next we met with a
third party administrator,
in light of the fact that
we’re self-insured.
We gathered information,
remembering in the back of our
minds the details might change.
We found a workable balance
between under- and over-prepared.
Now we’re continuing to watch what
develops with the new law.
(Brandi Gould, specialist –
payroll/benefits, The Keeney
Manufacturing Co., Newington, CT)
among our staff.
For example: One of our
departments ordered and paid for
pizzas topped with “the works” for
competitors in another department!
Not only did the competition boost
company morale, but made work
more fun and helped people shed some
pounds.
Case in point: Our “Biggest Loser”
lost 15% of his body weight and four
years later, he’s still kept it off!
(An HR manager in Youngstown,
OH, name withheld by request)
xwww.WhatsNewinBenefitsandCompensation.comx
May 4, 2015
5
P
O L I C I E S
& P
R O C E D U R E S
WHAT BENEFITS EXECS SAID
Benefits: The CFO/
Employee Discount
L EGAL P ITFAL L S
ADA: Temporary accommodation traps
W
hen employers grant
accommodation requests, those
accommodations should always be
made on a temporary basis.
Unfortunately, many firms
unknowingly turn these temporary
accommodations into permanent ones.
Preventing firms from trapping
themselves in permanent
accommodations was a major theme
of a presentation by Buck Consultants’
Ophelia W. Galindo.
interactive process and/or hardship
analysis, it should be clear the
accommodation is only temporary.
From there, employers should
revisit the accommodation regularly to
see if the circumstances are still the
same or if changes have taken place
that could alter the accommodation.
A 30-day increment usually works
well, so shoot for check-ins every
30 days, 60 days, 90 days, etc.
Act early to prevent confusion
Another area that should be
reviewed regularly: job descriptions.
Many job descriptions are poorly
written, so “essential job functions”
are difficult to pin down.
Example: If a job requires a high
stress tolerance, that should be listed
in the description because it would
impact the accommodation process.
Galindo also offered what she
called “The Reasonable Test,” a very
simple test to determine whether or
not an accommodation is reasonable.
If the accommodation will have a
negative impact on the entire
company, chances are it’s not a
reasonable accommodation. Generally,
the smaller the firm, the easier it’ll be
Galindo stressed the importance of
making sure employers act early to
prevent any confusion.
Here’s why: Say an employee’s
accommodation has been in place for
a long period of time. The company
decides the arrangement is no longer
working out and tells the worker.
The worker then sues under
the ADA, and the court sides
with the employee. Reason: The
accommodation has been in place for
this long without it impacting the
company, so there’s no reason why it
should be an undue hardship now.
In any communication about the
reasonable accommodation during the
Revisit job descriptions
S H A R P E N Y O U R J U D G M E N T – THE DECISION
Other than higher pay, what do execs
think employees want this year?
Better benefits/
enhanced health plan 41%
More vacation days 19%
Source: Accountemps survey of CFOs
And what did employees say they
wanted most this year? Thirty
percent said their top wish was more
vacation days, and 26% cited a
better benefit plan, such as an
enhanced healthcare plan.
(Each issue of WNB&C contains an exclusive survey
to give benefits officers insight into what their
peers nationwide are thinking and doing.)
to prove the accommodation
negatively impacts the entire
workforce.
Of course, this test should never be
used for employment-based decisions.
When the ADA is in play, the
interactive process is always best.
Based on “Building a Better
Mousetrap: Trends in FMLA & ADA
Administration,” by Ophelia W.
Galindo, national leader of absence and
productivity solutions, Buck Consultants,
as presented at the Mid-Sized Retirement
& Healthcare Conference.
encouraging or demanding under-reporting.
Because of this contradiction, Betty’s company is now
facing a no-win situation: Either a costly settlement or a
lengthy (and costly) trial.
(See case on Page 2.)
No, the company lost.
A court ruled that the lawsuit could go to trial –
an expensive proposition no matter how the case
comes out.
Betty’s company tried to argue that Lou violated a strict
company policy about reporting work hours.
Therefore, he wasn’t entitled to hours he later said he
worked.
Easy to circumvent
This argument didn’t work for the court. It said
the company erred by relying on policies that require
employees to report all hours worked while also making it
easy for supervisors to circumvent those very policies by
Analysis: Overtime must be paid, but ...
It’s great to have consistent policies in place, but
employers have to be careful not to rely too heavily on
those policies.
Whatever your policy says, the FLSA requires employers
to pay staffers for all hours worked, regardless of whether
those hours are officially reported.
If you want to discourage employees from working OT
or even discipline them for it, you’re well within your
rights. But if employees do work extra hours, they must be
paid overtime.
Cite: Bailey v. TitleMax of Georgia Inc., U.S. Crt. of App.,
11th Cir., No. 14-11747, 1/15/15. Dramatized for effect.
xwww.WhatsNewinBenefitsandCompensation.comx
6
May 4, 2015
• Teledoc services, and
• a flexible spending account (FSA)
with a rollover option.
Benefits education was key
Communicating the change to our
employees was critical.
In the past, some of our staff were
more apt to delay necessary care and
even fill prescriptions because of their
uncertainty about costs and how to
access services.
First, we created an easy-to-read
On the hunt for a broker
enrollment guide, designed
Our priority was to find
in our company colors,
a benefits provider that
Case Study: which got their attention
would partner with us in
and made the process less
lowering our company’s
intimidating.
WHAT
costs, while keeping benefits
Next, we made our
WORKED,
affordable for our
benefits
communication
employees.
WHAT
clear and engaging,
We also needed to boost
simplifying the jargon and
DIDN’T
participation. Most of our
“insurance speak.”
employees are hourly
We held meetings at all
workers and won’t enroll in a plan
four
of
our
sites
to go over costs and
that isn’t both accessible and
explain
the
plan.
affordable.
We reinforced our communication
After an intensive search, we
strategy
by holding 20-minute
found a benefits provider that had
sit-downs
with each employee for
creative solutions to rein in benefits
individual
benefit counseling.
costs while offering our employees a
The
meetings
were crucial in
rich benefit plan that didn’t put a
answering questions that some
strain on their budget.
employees weren’t comfortable
We stayed with a PPO like we had
posing in a group.
before with lower deductibles and
During the year, we kept
co-pays – but one that is more
communication going by holding
cost-effective and offers more
quarterly health fairs at each site.
services.
Employees have two plans to
Savings all around
choose from:
The result: We increased employee
• $150 deductible, $20 co-pay plan, or
participation by 25% over two years.
• $300 deductible, $15 co-pay plan.
All in all, our company has seen a
With a larger network and more
25% savings since we made the
healthcare professionals to choose
switch.
from, employees can also take
(Teresa Macemore, benefits
advantage of these special services:
manager, Case Farms, Troutman, NC)
• company nurses/benefit specialists
during each shift at all four
locations
Test your knowledge: Decide
whether the following statements
are True or False.
Then check your response against
the answers below.
1. Employees are free to discuss
“confidential” information, like
wages, bonuses, sales figures, etc.,
in and out of the company.
2. Company policy should address
how employers expect personal
devices to be used in the office.
3. Workers have a right to protest
company policies and treatment.
ANSWERS
■ Answers to the quiz
ur company has been growing
steadily over the last few years,
making it clear we had to make certain
changes.
The first thing we needed to change
was our benefits provider.
Being with the same provider for
many years, we needed a company
that could evolve with our company’s
growth and profitability in order to
become an effective retention and
recruitment tool.
The agency has issued a report on
when certain rules, like governing
employee communications in and
out of the office, confidentiality and
workers’ access to company property
constitute unfair labor practices.
1. True. The NLRA gives employees,
the right to discuss “confidential”
information if certain conditions
are met. This is lawful: “No
unauthorized disclosure of
business ‘secrets’ or other
confidential information.”
O
Would your employee handbook
survive NLRB scrutiny?
2. True. Employers that allow “bring
your own device” (BYOD) must
also address the security risks,
what to do if a device used for
work is lost or stolen and the
access employees have to
company data on such devices.
■ New provider gave us more bang for our buck
■ Employee handbooks: What’s
legal, what’s not
3. True. The NLRA gives workers the
right to criticize their practices.
“[B]e respectful to the company,
other employees, customers ...” is
too broad. Put it this way: “Each
employee is expected to work in a
cooperative manner with
management, co-workers,
customers and vendors.”
Changing brokers boosted
participation and slashed costs 25%
TEST YOUR KNOWLEDGE
Info: bit.ly/NLRB487
A R E A L - L I F E M A N A G E M E N T S T O RY
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May 4, 2015
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High Court makes it easier
to file discrimination suits
Heads up: A recent Supreme Court
ruling may force you to amend your
policy regarding pregnant workers.
In Young v. UPS Inc., the company
denied an accommodation request, per
its company policy, because the
employee wasn’t injured on the job. It
argued that it treated the pregnant
employee the same as it would any
similarly situated individuals (i.e.,
those injured off the job) and complied
with the Pregnancy Discrimination
Act.
The Court, however, avoided the
issue of the on-the-job injury.
It simply said it’s discriminatory to
treat pregnant staffers differently from
other workers with similar physical
limitations and devised a new test to
determine if discrimination takes
place. A person could establish a
discrimination case if she can prove:
• She was pregnant.
• She requested an accommodation
and was denied.
• The requested accommodation had
been granted to non-pregnant
employees with similar
abilities/inabilities to work.
Bottom line: You must now be
wary of creating any policy that
accommodates non-pregnant workers
and fails to accommodate pregnant
staff with similar work restrictions.
Info: bit.ly/pregnant487
IRS aims to cut costs,
headaches of auto-features
The feds really want to encourage
more employers to utilize automatic
features with their retirement plans
and have taken some major steps to
give them a nudge in that direction.
The IRS just issued guidance that
would make it easier for staff to be
automatically enrolled in retirement
plans by their employers. The
guidance also simplifies the correction
methods plans must take if errors are
made (e.g., setting the wrong autoenrollment or escalation rates).
N
HOT WEBSITES
E W S
These changes add to the IRS’ selfcorrection program (see story, Page 4),
which allows plan sponsors to correct
administrative errors without
jeopardizing the tax qualification or
needing agency approval.
Among other things, the IRS
guidance provides new safe harbor
methods to simplify and cut the costs
and headaches of correcting certain
plan errors associated with both
auto-enrollment and auto-escalation.
Info: bit.ly/auto487
■ FLSA overtime primer
Every now and then it’s a good
idea for HR and benefits pros to
review the basics of the Fair Labor
Standards Act’s (FLSA) overtime
provision. This is a great resource for
such a review.
Click: bit.ly/basic487
■ Benefits IQ quiz
In honor of National Employee
Benefits Day, this organization put
together the following quiz. Take it
and pass it along to your staffers.
Click: bit.ly/quiz487
Study: Employers bolstering
their wellness incentives
If your company is planning on (or
already has) increasing your wellness
program incentives, you’re not alone.
Employers plan to spend an average
of $693 on wellness initiatives this
year, up from $594 in 2014.
That’s according to an employer
survey by Fidelity Investments and the
National Business Group. The study
also found that 79% of employers say
they now offer financial incentives to
encourage participation.
Info: bit.ly/wellness487
■ Top EEOC targets
The Equal Employment
Opportunity Commission (EEOC) has
definitely ramped up enforcement.
Here are the top 10 categories of
EEOC charges filed in 2014.
Click: bit.ly/EEOC487
FUND WATCH
If your 401(k) funds are underperforming
compared to these benchmark data, you
may want to make changes.
■ Average % Rate of Return*
YTD. 1 mo.
Jobseeker tells wrong
guy to ‘(expletive) himself’
Be careful the next time you go to
tell someone off, because you never
know how much power that someone
can have over your immediate future.
That’s a lesson one London job
applicant learned the hard way.
Apparently, while on his way to an
interview, he pushed past HR
executive Matt Buckland as the two
men were exiting the subway.
The jobseeker became upset when
Buckland stepped in front of him to let
a woman pass. In his rage, the
candidate turned directly to Buckland
and told him to “(expletive) himself.”
Much to the man’s surprise, when
he arrived at his destination, Buckland
was the one conducting the interview.
Looks like the jobseeker was the one
who ended up “(expletive) himself.”
12 mo.
3 yr.
5 yr.
+8.74
+8.40
Balanced
+2.18
-0.11
+5.49
Large-cap growth
+3.45 -1.77 +12.58 +14.62 +13.83
Equity income
+0.74 -0.85
+7.23 +12.93 +12.01
Intermediate government
+1.46 +0.64 +2.57 +0.39
+3.13
Source: Lipper Analytical Services
■ Performance Indexes
Curr.
1 mo.
12 mo.
3 yr.
5 yr.
1408
1186
Russell 2000 (US small cap)
1259
1220
1135
818
701
S&P 500 (US large cap)
2080
2071
1851
NASDAQ Composite (tech heavy)
4886
5008
4276
3119
2402
*As of 4/6/15
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May 4, 2015